Simple linear regression

Similar financial terms

Simple moving average
The mean, calculated at any time over a past period of fixed length.

Simple linear trend model
An extrapolative statistical model that asserts that earnings have a base level and grow at a constant amount each period.

Simple interest
Interest calculated only on the initial investment.

Simple compound growth method
A method of calculating the growth rate by relating the terminal value to the initial value and assuming a constant percentage annual rate of growth between these two values.

Simple prospect
An investment opportunity where a certain initial wealth is placed at risk and only two outcomes are possible.

Log-linear least-squares method
A statistical technique for fitting a curve to a set of data points. One of the variables is transformed by taking its logarithm, and then a straight line is fitted to the transformed set of data points.

Linear regression
A statistical technique for fitting a straight line to a set of data points.

Linear programming
Technique for finding the maximum value of some equation subject to stated linear constraints.

Multicolinearity
One variable is the expression of the other

Second pass regression
A cross-sectional regression of portfolio returns on betas. The estimated slope is the measurement of the reward for bearing systematic risk during the period analyzed.

Regression toward the mean
The tendency for subsequent observations of a random variable to be closer to its mean.

Regression equation
An equation that describes the average relationship between a dependent variable and a set of explanatory variables.

Regression analysis
A statistical technique that can be used to estimate relationships between variables.

Multiple regression
The estimated relationship between a dependent variable and more than one explanatory variable.